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Mortgage Lenders’ Stocks Surge as Trump Pushes for $200bn Bond Buy to Ease Homebuying Costs

By
Samuel Nwite
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0

Shares of major mortgage lenders soared on Friday, buoyed by President Donald Trump’s directive to inject liquidity into the housing market through a massive purchase of mortgage bonds.

The move, announced via social media on Thursday, aims to drive down interest rates and monthly payments, potentially revitalizing a sector strained by elevated borrowing costs. In his post, Trump called on unspecified “representatives” – leaving ambiguity as to whether this involves the Treasury Department, Fannie Mae, Freddie Mac, or another federal entity – to acquire $200 billion in mortgage bonds.

“This should bring down both rates and monthly payments, making home ownership more affordable,” Trump stated.

He attributed the push to the substantial cash reserves held by Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs) that purchase mortgages from originating lenders like banks and credit unions.

Federal Housing Finance Agency (FHFA) Director Bill Pulte swiftly responded on social media, affirming, “We are on it.” This quick acknowledgment underscores the administration’s intent to act promptly on the president’s instructions.

The market reacted quickly. Rocket Companies, a leading mortgage lender, climbed more than 6% to a new 52-week high. UWM Holdings, another key player, advanced over 8%, marking one of its strongest daily performances in the past year. PennyMac Financial Services rose approximately 5%. Even lenders with niche focuses benefited: Better Home & Finance, which emphasizes artificial intelligence in its operations, gained more than 2%. Opendoor Technologies, a real estate e-commerce platform that has garnered meme-stock status, surged over 16%.

Wall Street had anticipated some form of intervention from the Trump administration to curb rising mortgage rates, but the specifics have prompted a wave of analysis regarding consumer impacts and stock implications.

“We read this as the President ordering FHFA Director Bill Pulte to force Fannie Mae and Freddie Mac to buy $200 billion of their own MBS to bring down interest rates,” wrote Jaret Seiberg, an analyst at TD Cowen, referring to mortgage-backed securities.

Seiberg noted that the directive was “not a surprise,” aligning with broader expectations of policy actions to stimulate housing affordability.TD Cowen projects the 10-year U.S. Treasury yield could close 2026 at 3.5%, a decline from Friday’s level of about 4.17%. This shift would exert downward pressure on 30-year fixed mortgage rates, potentially reducing them to around 5.25% from the current 6.2%. If the $200 billion purchases are executed rapidly, rates could dip even further, approaching 5% by year’s end.

However, not all assessments were as optimistic. Tobin Marcus of Wolfe Research described the $200 billion program as “smaller than the firm previously anticipated,” suggesting its effect on the housing market would be “positive but fairly modest.” Rafe Jadrosich from Bank of America highlighted potential relief for prospective homebuyers, estimating that for every quarter-point drop in mortgage rates, the monthly payment on a $400,000, 30-year fixed loan could decrease by up to $70.Sector-specific outlooks varied among analysts.

Jeffrey Adelson at Morgan Stanley indicated that lower rates could propel UWM Holdings and Rocket Companies toward his more bullish scenarios. Terry Ma of Barclays identified PennyMac and UWM as offering the strongest risk-reward profiles for investors, cautioning that Rocket’s relatively high valuation multiple could hinder its upside.

“The volume levered names are the clear beneficiaries from an earnings perspective to the extent that these initiatives stimulate refinance and purchase origination activity in a meaningful way,” Ma explained in a note to clients.

The announcement also raises questions about its ripple effects on potential initial public offerings (IPOs) for Freddie Mac and Fannie Mae, both of which remain under federal conservatorship. Pulte told CNBC on Thursday that a decision on pursuing IPOs could come within the next month or two. Wolfe’s Marcus expressed skepticism, stating, “We have always thought that the path toward a transaction would be slower and messier than some investors seemed to be assuming in the post-election euphoria last year.”

Marcus further characterized the mortgage bond purchases as “the biggest and most obvious demand-side tool in the [White House’s] housing toolkit.” Yet, he tempered expectations, noting that the initial market response was underwhelming.

“It still looks to us like the White House doesn’t have a silver bullet for housing or for the ‘affordability’ problem more generally,” he concluded.

While the stock gains reflect optimism, the modest scale of the program suggests that broader economic factors – including Treasury yields and overall demand – will play a pivotal role in determining its ultimate success.

Moving from Downstream to Upstream Through Accumulation of Capabilities

By
Ndubuisi Ekekwe
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1

In markets, everyone is welcome to participate, but only a few are invited to collect the trophies. The difference is not location or luck; it is capability. My Accumulation of Capability Construct explains that firms do not win simply because they are present in an industry;  they win because they master it. A petrol station operator, a local fuel trader, a neighbourhood car dealer and a global manufacturer like Toyota or a refinery like Dangote are all in the same broad sectors. Yet, the value they capture is radically different.

Why? Because the station and dealer play at the downstream edge of the value chain, while Toyota and Dangote have climbed upstream by accumulating deep technical, financial and organizational capabilities that are extremely hard to copy.

The message for founders and executives in Lagos, Nairobi, Accra and beyond is simple: trading may feed you, but capabilities will keep you. If you remain permanently downstream, you will always be exposed to currency swings, supplier decisions, and policy shocks you cannot control. But if you deliberately climb upstream,  like Dangote moving from importation to refinery, or Toyota evolving from assembler to global platform designer, you position your firm where value is thickest and competition is thinnest. Right there, you begin to “tax” the state and the government in what I have called the conglomerate tax!

Here, Conglomerate Tax isn’t a formal government levy but a concept where large conglomerates, due to their scale, market power, and ability to solve major national problems (like infrastructure), effectively receive “taxes” from governments in the form of subsidies, tax breaks, and concessions that smaller businesses can’t get, making the citizens and nations indirectly support their growth. It’s a system where governments subsidize conglomerates to fix critical market frictions, essentially paying them to build national capacity, as seen with Amazon and the Dangote Group.

Good People, the Igbo Apprenticeship System must go upstream. Yes, while currently downstream, the Igbo Apprenticeship System can move upstream by adopting a corporate cooperative framework. This shift mirrors the success of Europe’s FrieslandCampina, which transformed thousands of dairy farmers into a $13 billion corporate powerhouse, serving continents with products, with Peak Milk its most popular brand in Nigeria.

It can be argued that looking to Europe is unnecessary when Nigeria has its own history of scaling the ‘Ubuntu’ cooperative spirit. Before their eventual decline, the cocoa, palm oil, and groundnut marketing boards demonstrated our capacity for large-scale collective enterprise. By embracing the Ghanaian concept of ‘Sankofa’, reaching back to reclaim our past, we can extract vital lessons to architect a more resilient economic future.

Abstract Introduces Direct Bitcoin Buy and Sell on its Platform, as Truebit Protocol Suffers Breach Resulting to $26M in Losses

By
Paul Ugbede Godwin
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0

Abstract, the consumer-focused Ethereum Layer-2 blockchain developed by Igloo Inc. the team behind Pudgy Penguins, has introduced the ability to buy and sell native Bitcoin (BTC) directly on its platform.

This feature went live in early January 2026, making it seamless for users to trade real BTC not wrapped versions like WBTC right from the Abstract Portal — just a couple of clicks away.

Powered by integrations with Gate and Aborean Finance, a trading/finance app in the Abstract ecosystem. Users can access this directly in the Abstract Global Wallet http://abs.xyz  interface on the portal.

This aligns with Abstract’s mission to simplify crypto for everyday consumers, building on its zkSync-based ZK rollup architecture for fast, low-cost, and secure experiences. This adds to the growing trend of bringing native Bitcoin functionality into DeFi and consumer chains, without relying on bridges or wrappers in many cases.

Implications for Users

This integration makes Bitcoin more accessible for everyday crypto users on an Ethereum Layer-2 like Abstract. No more dealing with high Bitcoin network fees or slow confirmations—trades happen in seconds with minimal costs, as low as a few cents via zkSync tech.

It’s particularly appealing for newcomers or those in the Pudgy Penguins/NFT crowd, since Abstract is consumer-oriented. Users can hold real BTC in their Abstract wallet, trade it alongside ETH/ERC-20s, and potentially use it in DeFi apps without bridges or wrappers, reducing risks like those seen in past WBTC exploits.

However, it’s still reliant on partners like Gate.io for custody, so you’re trusting a centralized exchange for the underlying BTC— not fully decentralized. Abstract, built by the Igloo team, is positioning itself as a “normie-friendly” chain. Adding native BTC trading could supercharge adoption: more liquidity, higher TVL, and attract BTC maximalists who previously ignored ETH L2s.

From recent X posts, integrations like gtBTC—Gate’s BTC variant allow liquidity provision in pools, earning yields via ABX tokens. This could spark a flywheel—more users mean more apps, games, and social features on Abstract, differentiating it from rivals like Base or Optimism.

Long-term, it supports Abstract’s goal of abstracting away crypto complexity, potentially leading to more partnerships with Aborean Finance for advanced trading. This blurs lines between BTC and ETH ecosystems. Native BTC on L2s enables true cross-chain utility without counterparty risk, aligning with trends like BTC RWAs (real-world assets) for yield.

It could increase BTC’s role in DeFi, where most activity is ETH-based, potentially boosting overall market efficiency and reducing reliance on centralized bridges. Exchanges like Gate.io gain exposure, but it pressures CEXs by offering onchain alternatives.

For Bitcoin, it enhances its “productive collateral” narrative—idle BTC can now earn without selling. Broader adoption might accelerate institutional BTC strategies, echoing US banks’ new ability to trade BTC or national reserves. As seen in general crypto analyses, such features could stabilize markets by integrating BTC into faster, cheaper systems .

However, it might amplify volatility if retail floods in without understanding risks. Trading native BTC on L2s could draw scrutiny, especially with programmable money concerns . In jurisdictions with crypto bans or tight rules, this might segment markets .

While “native,” it’s likely custodied by Gate, introducing single-point failure risks. Past crypto events show integrations can lead to exploits or liquidity issues. Increased accessibility might fuel speculation, but without strong utility, it could lead to pump-and-dumps. Broader implications include potential for more surveillance in digital assets.

This is a step toward mainstream crypto usability, but it’s early—DYOR, as adoption depends on execution and market sentiment. If BTC hits new highs via national buys, features like this could amplify gains across chains.

It’s a step toward making BTC more usable in everyday onchain activities on platforms like Abstract. If you’re on Abstract, head to the portal to try it out — super straightforward for trading BTC alongside other assets.

Truebit Protocol Suffered Breach Resulting to $26M in Losses

Truebit Protocol suffered a major exploit on January 8, 2026, resulting in approximately $26 million in losses around 8,535 ETH, based on prices at the time.

The incident involved a vulnerability in an old smart contract deployed about five years ago, specifically a mispriced minting/purchase function in the “Truebit Protocol: Purchase” contract address http://0x764C64b2A09b09Acb100B80d8c505Aa6a0302EF2. This flaw allowed attackers to mint TRU tokens at heavily discounted (near-zero) prices, then drain ETH reserves from the protocol through repeated buy-sell loops.

On-chain data from trackers like Lookonchain and PeckShield confirmed 8,535 ETH ($26–26.6M) was siphoned. The funds were quickly split and transferred to multiple addresses (e.g., 0x2735…cE850a and 0xD12f…031a60) to complicate tracing.

Truebit posted on X: “Today, we became aware of a security incident involving one or more malicious actors. The affected smart contract http://0x764C64b2A09b09Acb100B80d8c505Aa6a0302EF2  is and we strongly advise the public not to interact with this contract until further notice. We are in contact with law enforcement and taking all available measures to address the situation.”

Security firms like Cyvers initially flagged it as “suspicious/anomalous” activity, but it was quickly confirmed as an exploit by multiple sources including PeckShield. The native TRU token collapsed dramatically — dropping 99.9%+ from ~$0.16 to near-zero values like $0.000077 or lower on some trackers.

This wiped out much of the token’s liquidity and value overnight, severely affecting holders. This marks one of the first major DeFi exploits of 2026, highlighting ongoing risks with legacy/older contracts in the space similar to past incidents like Balancer’s rounding error bug.

PeckShield noted the same attacker may have hit another project (Sparkle) ~12 days earlier for a smaller amount. The situation is still developing — no full post-mortem yet, and recovery/remediation plans are unclear. Users should avoid the affected contract and monitor official Truebit protocol channels for updates.

The Truebit Protocol exploit has far-reaching implications for the project, its users, the broader DeFi ecosystem, and even ongoing discussions around blockchain security. The exploit drained approximately 8,535 ETH valued at ~$26–26.6 million at the time, primarily through a vulnerability in an outdated “Purchase” smart contract.

This allowed the attacker to mint TRU tokens at near-zero cost via a mispriced function and drain ETH reserves in looped transactions.The native TRU token suffered a catastrophic collapse.

Pre-exploit price: ~$0.16. Post-exploit: Dropped 99%+ often reported as 99.9% or near 100%, reaching lows like $0.0000000029 to $0.000077 on various trackers like CoinGecko, Nansen data. Liquidity on DEXs evaporated almost instantly, leaving holders with essentially worthless positions and triggering widespread panic selling.

This marks one of the most severe token devaluations from a single exploit in recent memory, effectively wiping out the project’s market cap overnight. Truebit quickly acknowledged the incident on X, labeling it a “security incident involving one or more malicious actors” and urging users to avoid the affected contract http://(0x764C64b2A09b09Acb100B80d8c505Aa6a0302EF2).

They confirmed contact with law enforcement and are “taking all available measures,” but no detailed technical post-mortem, recovery plan, or compensation details have emerged yet. The protocol’s focus on verified off-chain computation for Ethereum remains intact in theory, but trust is severely damaged — especially given irony pointed out by critics:

Truebit’s longtime slogan is “Don’t just trust, verify”, yet the lack of recent/public audits and partially non-open-source code in older contracts left users without verifiable security assurances. Recovery of funds appears unlikely in the short term, as stolen ETH was rapidly split and laundered across addresses.

The same attacker is linked to a smaller ~$5 ETH hit on Sparkle protocol ~12 days earlier. This is widely seen as the first major DeFi exploit of 2026, setting a concerning tone after 2025’s high losses over $2.7B total per some reports and a December dip to ~$76M in hacks.

Key lessons and ripple effects include: Legacy code risks — Old, unaudited, or dormant contracts even from reputable projects are prime targets. Attackers increasingly scan for mispriced functions, rounding errors, or boundary issues in years-old deployments.

Audit and transparency gaps — Reinforces the need for ongoing, public audits and full source code verification. Smaller/niche protocols like Truebit are especially vulnerable without continuous maintenance.

Investor confidence — Erodes trust in DeFi infrastructure projects, particularly those without strong liquidity backstops or insurance. It highlights how quickly retail holders can lose everything in “verified” ecosystems.

Minimal direct impact on major assets like ETH which remains resilient, but it contributes to caution around altcoins and legacy DeFi plays. Analysts note it underscores persistent vulnerabilities in computation-scaling protocols and calls for enhanced security protocols industry-wide.

Potential regulatory scrutiny — Could fuel arguments for stricter oversight of smart contracts, especially as exploits continue despite falling aggregate losses in late 2025.

In short, while Truebit’s core tech— off-chain verifiable computation has long-term value for Ethereum scaling, this exploit likely deals a near-fatal blow to the project in its current form. It serves as a stark reminder: in DeFi, legacy code can be a ticking bomb, and “verify” must extend beyond slogans to rigorous, up-to-date security practices.

Morgan Stanley’s Wallet Push will Accelerate RWAs and Tradfi Intersection with Blockchain

By
Paul Ugbede Godwin
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0

Morgan Stanley has announced plans to launch a proprietary digital wallet in the second half of 2026. This development was reported across multiple financial and crypto news outlets primarily citing a Barron’s article.

The wallet is designed to support tokenized assets, including traditional securities, cryptocurrencies, and private equity such as tokenized shares in private companies. It aims to serve as a unified custody solution, bridging traditional finance (TradFi) with blockchain-based assets for wealth management clients, high-net-worth individuals, and institutional users.

The digital wallet is slated for the second half of 2026 after mid-year. In the first half of 2026, Morgan Stanley plans to enable direct trading of Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) on its ETRADE platform, in partnership with infrastructure provider Zerohash, a collaboration announced in late 2025.

This fits into Morgan Stanley’s accelerating push into digital assets, including recent SEC filings for spot ETFs tied to Bitcoin, Ethereum, and Solana. The moves reflect growing institutional adoption of crypto and tokenization (real-world assets or RWAs on blockchain), especially amid regulatory clarity in the U.S.

The initiative, as described by Jed Finn, Head of Wealth Management at Morgan Stanley, positions the bank to integrate crypto custody, trading, and tokenized private markets into its massive wealth management ecosystem managing trillions in assets. It’s seen as a step toward mainstream adoption, allowing clients to manage diverse digital and traditional assets in one secure, bank-grade environment.

Morgan Stanley’s planned digital wallet launch in the second half of 2026 represents a significant step in mainstreaming digital assets, potentially accelerating the convergence of traditional finance (TradFi) and blockchain technology.

With the bank’s $1.8 trillion in assets under management, this could drive substantial institutional inflows into cryptocurrencies and tokenized real-world assets (RWAs) like stocks, bonds, real estate, and private equity. Experts see it as a catalyst for broader adoption, blurring lines between legacy systems and decentralized finance, and enhancing liquidity in tokenized markets.

Crypto enthusiasts on X have reacted bullishly, noting it as a sign of institutions “loading up” during market dips, which could lead to price appreciation for assets like BTC, ETH, and SOL as retail investors get shaken out. This move positions Morgan Stanley as a leader in fintech-driven wealth management, potentially pressuring competitors like JPMorgan, Goldman Sachs, and BlackRock to expand their own digital asset offerings.

By integrating crypto trading on ETRADE in early 2026 and following with a proprietary wallet, the bank could capture a larger share of high-net-worth and institutional clients seeking unified custody for diverse assets. It also underscores the growing role of tokenization in private markets, which might spur innovation in areas like fractional ownership and faster settlements, reshaping how assets are managed and traded.

The initiative hinges on continued regulatory clarity in the U.S., especially post-2024 elections, with assumptions of a crypto-friendly environment under ongoing SEC approvals for ETFs. Success could reinforce trust in digital assets from legacy institutions, boosting investor confidence and long-term adoption.

However, delays due to approvals or market volatility remain risks, and while the market has shown muted immediate reaction e.g., BTC stable around $91K, long-term effects could include billions funneled into RWAs if executed smoothly.

Overall, this signals a maturation of the crypto ecosystem, potentially leading to more efficient capital markets through blockchain integration. It may democratize access to alternative investments for wealth clients, while highlighting the end of a business cycle contraction as liquidity returns.

Community sentiment on X is optimistic, viewing it as “exciting developments” that could propel the RWA boom. This news has sparked excitement in the crypto community, with many viewing it as another major Wall Street institution going “all-in” on blockchain integration. Keep in mind that plans can evolve based on regulatory approvals and development progress.

Anthropic’s $10B Raise at $350B Valuation Intensifies Global AI Arm Race

By
Paul Ugbede Godwin
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0

Anthropic is in advanced talks to raise approximately $10 billion in a new funding round at a $350 billion pre-money valuation. This would nearly double the company’s valuation from just four months ago, when it closed a $13 billion Series F round in September 2025 at $183 billion post-money.

Before that, in March 2025, it raised $3.5 billion at $61.5 billion. Singapore’s sovereign wealth fund GIC and Coatue Management are expected to lead the round. The deal could close in the coming weeks, though terms including the exact amount could still change.

This comes amid explosive growth in demand for Anthropic’s Claude models, especially enterprise tools like Claude Code powered by advanced versions like Claude Opus 4.5. The company has seen rapid revenue scaling — from ~$1B annualized run-rate earlier in 2025 to over $5B by late last year, with ambitions for much higher figures in 2026.

This funding is distinct from recent strategic commitments, like up to $15 billion combined from Microsoft and Nvidia tied to compute purchases. This mega-round reflects the insane investor appetite for frontier AI companies right now, even as some warn about bubble risks.

For comparison, here’s how the top players stack up in recent/private valuations: Anthropic is targeting $350B. OpenAI recently valued around $500B, with talks of even higher up to $750B–$830B in potential new rounds. xAI’s recent raise implying >$230B.

Anthropic founded in 2021 by ex-OpenAI execs Dario and Daniela Amodei is also reportedly preparing for a potential IPO as early as later in 2026, which could make it one of the biggest public listings ever if it hits these levels.

The AI funding arms race is far from over — it’s accelerating. This potential funding round isn’t just another headline—it’s a seismic shift in the AI landscape, reflecting both explosive growth and emerging risks. Drawing from recent reports and discussions as of early January 2026, here’s a breakdown of the key implications across various angles.

The $10B influx would supercharge Anthropic’s ability to invest in compute infrastructure, talent acquisition, and model development. This comes on top of recent deals like up to $30B in combined commitments from Microsoft and Nvidia for Azure compute and hardware, emphasizing a pivot toward “compute capital” as the new moat in AI.

With revenue reportedly scaling from ~$1B annualized in early 2025 to over $5B by year-end, this capital could accelerate enterprise tools like Claude Code built on advanced models such as Claude Opus 4.5, helping Anthropic close the gap with OpenAI.

Multiple sources indicate Anthropic is prepping for a public listing as early as late 2026, potentially one of the largest ever. Hiring firms like Wilson Sonsini for legal prep signals this raise is a bridge to going public, valuing the company alongside giants like SpaceX ($800B) and OpenAI ($500B+).

This could democratize access for retail investors but also invite scrutiny over governance and safety commitments. Anthropic’s valuation nearly doubling from $183B post-money in September 2025 highlights the frothy AI market, where frontier players are repriced based on infrastructure bets rather than immediate profits.

This puts pressure on competitors: OpenAI is eyeing $750B–$830B in new rounds, while xAI sits above $230B. It’s a signal that AI is shifting from software demos to industrial-scale compute wars, with implications for talent poaching and innovation speed.

Led by GIC (Singapore’s sovereign fund) and Coatue, this round shows global capital flooding into AI, treating it as critical infrastructure akin to energy or semiconductors. On X, discussions frame it as “industrial policy” rather than startup hype, but warnings of a bubble persist—especially if outcomes like widespread AGI adoption don’t match the trillions in valuations.

For context, the combined private valuations of top AI firms now exceed $1.5T, fueling a race that could reshape economies but also lead to overcapacity if demand falters. This capital could spur advancements in generative AI, benefiting industries like healthcare, finance, and automation.

However, it raises questions about concentration: A few players controlling frontier tech might stifle open-source alternatives, as noted in critiques of closed models’ lack of transparency and user control. On the flip side, it attracts lean teams and startups to ride the wave without massive R&D, potentially democratizing AI tools.

At $350B, Anthropic becomes a target for regulators concerned about AI safety, data privacy, and antitrust. X threads highlight risks like systemic concentration and the need for ethical AI adherence amid geopolitical tensions.

This could lead to new policies, especially as AI intersects with blockchain and tokenization trends in carbon markets or RWAs, amplifying surveillance and financialization concerns. Sovereign funds’ involvement underscores AI as a national priority, potentially shifting capital from traditional sectors. For bootstrapped or smaller firms, it contrasts with paths to $10M ARR self-sufficiency, avoiding VC dilution while still scaling.

While bullish for AI’s future, these valuations demand real-world outcomes beyond hype—failure could trigger a correction, as seen in past tech bubbles. Discussions warn of risks like regulatory hurdles, talent shortages, or compute bottlenecks, with some viewing it as “absurd” inflation.

Investors are advised to monitor capital deployment and synergies with decentralized tech like Solana for AI infra, while prioritizing verifiable value over speculation. This raise cements Anthropic as a frontier AI powerhouse, fueling an arms race that’s as exciting as it is precarious.

It could usher in breakthroughs but also heightens bubble fears and calls for balanced regulation. If you’re in AI or investing, this is a wake-up call to bet big—or diversify wisely.

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